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Revenue
 6 Months Ended
Jun. 30, 2024
Revenue [Abstract]  
Revenue

20. Revenue

 

   Six months
ended
June 30,
2024		   Six months
ended
June 30,
2023		 
Revenue from contracts with customers         
Hardware sales        
Government        
-Video IoT  $20,616   $
-
 
Software sales          
Non-Government          
-Video IoT   194,541    82,745 
-Security Convergence   
-
    
-
 
Service revenue          
Government          
-Video IoT   1,056,025    1,099,987 
-Security Convergence   19,112,606    4,767,044 
Non-Government          
-Video IoT   177,657    274,663 
-Security Convergence   113,246    204,896 
   $20,674,691   $6,429,335 

 

a)Disaggregation of revenue from contracts with customers

 

The Group derives revenue from the transfer of goods and services over time and at a point in time in the following major products lines and all revenue took place mainly in Asia and MENA region:

 

Six months ended June 30, 2024  Hardware   Software   Service   Total 
Total revenue streams  $22,557   $194,541   $20,966,070   $21,183,168 
Inter-revenue streams   (1,941)   
-
    (506,536)   (508,477)
Revenue from external customer contracts  $20,616   $194,541   $20,459,534   $20,674,691 
Timing of revenue recognition                    
At a point in time  $20,616   $194,541   $
-
   $215,157 
Over time   
-
    
-
    20,459,534    20,459,534 
   $20,616   $194,541   $20,459,534   $20,674,691 

 

Six months ended June 30, 2023  Hardware   Software   Service   Total 
Total revenue streams  $30,482   $168,562   $6,346,590   $6,545,634 
Inter-revenue streams   (30,482)   (85,817)   
-
    (116,299)
Revenue from external customer contracts  $
-
   $82,745   $6,346,590   $6,429,335 
Timing of revenue recognition                    
At a point in time  $
-
   $82,745   $
-
   $82,745 
Over time   
-
    
-
    6,346,590    6,346,590 
   $
-
   $82,745   $6,346,590   $6,429,335 

 

b)Contract assets and liabilities

 

The Group has recognized the following revenue-related contract assets and liabilities:

 

   June 30,
2024		   December 31,
2023		 
Contract assets:        
Contract assets relating to service contracts  $35,756,098   $34,213,379 
Contract liabilities:          
Contract liabilities relating to service contracts   $48,200   $107,603 

 

Revenue recognized that was included in the contract liabilities balance at the beginning of the period:

 

   Six months
ended
June 30,
2024		   Six months
ended
June 30,
2023		 
Revenue recognized that was included in the contract liability balance at the beginning of the year        
Service revenue   $54,199   $
                        -
 

 

c)Unfulfilled long-term contracts

 

Aggregate amount of the transaction price allocated to long-term service contracts that are partially or fully unsatisfied as of June 30, 2024 and December 31, 2023, amounting to $175,466,093 and $241,795,928, respectively. Since June 30, 2023, the Company entered into a significant firm-fixed price contract for building a secure governmental air-gapped network for the Government of Egypt (“GoE”) (“Egypt Contract”), denominated in EGP, includes revenues of approximately EGP 8.4 billion ($209 million, based on the exchange rate as of June 30, 2024).

 

Management expects that the transaction price allocated to the unsatisfied contracts as of June 30, 2024 and December 31, 2023, will be recognized as revenue from 2024 to 2028 and from year 2023 to 2027, respectively. Except for the abovementioned contracts, all other service contracts are for periods of one year or less or are billed based on the amount of time incurred.